Maria and Laura didn’t really get into details about their partnership agreement before they started their small boutique. That was 3 years ago. Now Laura is married and has children with no time to take care of the store. When Laura wants out, the girls can’t figure out how to divide their assets and liabilities among themselves, since they had no prior partnership agreement. This situation could have been avoided if they had consulted legal advice when starting the business.
Lawyers don’t just know laws. They are experts in understanding and making rules. Having a lawyer on board will suddenly make you a lot more aware and more in control of new contracts and agreements you are getting into. They can even help you set up a living trust for your business if needed.
Most startups don’t usually have “hiring lawyers” on top of their priority list. I’m here to tell you why they are wrong. The notorious “most startups are more likely to fail” notion is often true because companies fail to keep up with increasing tax and formalities as it grows. To decrease this likelihood, it’s important to have an attorney by your side.
It helps to be prepared
You need to make sure you understand the law properly and abide by it. No one’s going to walk up to you and explain how you could go wrong, that too for free. You need a professional who has sound knowledge about the area to advise you constantly.
Lawyers are helpful when it comes to patterns. From experience and research, they can help you avoid the potholes on your way to success. Before you even start your business, you will know why other businesses fail and find a way around it.
It’s never a bad idea to know information at your disposal. The laws are complicated and a business owner has too much on his plate to deal with everything by himself. There are many hidden laws which you can only know if you have a professional by your side. To make sure your business does not disregard any environmental, health or FDA regulations, you most definitely need legal help. Better to be safe than sorry!
Startups are called startups for a reason. They are a breath of fresh air with unique personas and innovative ideas. It is absolutely crucial to protect them from beginning, lest it be stolen. You have to play around with copyright laws, trademarks and patents as soon as project is launched. You have to take full advantage from aid and protection provided by the legal system. Protect your firm from both external and internal risks. If by any chance your work is being copied or stolen, your lawyer friend can help take legal action or at least stop their operation. If they race you to the extreme, your lawyer can always play the “sue” card.
Handling routine formalities and HR
It’s common for businesses to miss out on small details which end up as lost opportunity or penalties. Lawyers help you avoid that. They know all about documentation and formalities you need for your firm and how to maintain them. That helps you avoid any fines. e.g. filing for and/or renewing licenses.
Employees and employers have a complicated relationship with too many conditions. Which is why, we need company handbooks and employee contracts. Issues such as discrimination, harassment, employment agreements and termination tend to get ugly if not dealt with properly beforehand. You don’t want to get sued if you ever have to fire an employee during budget cuts!
Lawyers actually help your company expand
How? Well, governments often offer incentives and tax benefits for specific practices. Lawyers can identify these opportunities and help you apply them. For instance, an SME loan with smaller interest is being offered. Your legal advisor can help you describe what you need to be considered as an SME. Start-up lawyers can also help by introducing you to VCs and investors. Of course, helping you helps him.
Make the law your friend so you can minimize your risks as much as possible. So hire a lawyer, and make the odds be always in your favor!